CELESTICA INC (CLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLS - CA15101Q2071 - Common Stock
344.41 USD
+12.17 (+3.66%)
344 USD
-0.41 (-0.12%)
Taking everything into account, CLS scores 7 out of 10 in our fundamental rating. CLS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. CLS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CLS is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make CLS suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year CLS was profitable.
In the past year CLS had a positive cash flow from operations.
In the past 5 years CLS has always been profitable.
Each year in the past 5 years CLS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.85%, CLS belongs to the best of the industry, outperforming 90.40% of the companies in the same industry.
The Return On Equity of CLS (35.33%) is better than 94.40% of its industry peers.
CLS has a better Return On Invested Capital (21.33%) than 96.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is above the industry average of 9.11%.
The last Return On Invested Capital (21.33%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROIC | 21.33% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
Looking at the Profit Margin, with a value of 6.35%, CLS is in the better half of the industry, outperforming 71.20% of the companies in the same industry.
CLS's Profit Margin has improved in the last couple of years.
CLS has a Operating Margin of 7.33%. This is in the better half of the industry: CLS outperforms 70.40% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
CLS has a worse Gross Margin (12.04%) than 76.00% of its industry peers.
CLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
CLS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, CLS has less shares outstanding
Compared to 5 years ago, CLS has less shares outstanding
The debt/assets ratio for CLS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.64 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS has a Altman-Z score of 7.64. This is amongst the best in the industry. CLS outperforms 84.00% of its industry peers.
The Debt to FCF ratio of CLS is 1.97, which is an excellent value as it means it would take CLS, only 1.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CLS (1.97) is better than 78.40% of its industry peers.
CLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
CLS has a worse Debt to Equity ratio (0.37) than 63.20% of its industry peers.
Even though the debt/equity ratio score it not favorable for CLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 7.64 |
ROIC/WACC2.56
WACC8.34%
2.3 Liquidity
CLS has a Current Ratio of 1.47. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CLS (1.47) is worse than 76.80% of its industry peers.
A Quick Ratio of 0.88 indicates that CLS may have some problems paying its short term obligations.
CLS's Quick ratio of 0.88 is on the low side compared to the rest of the industry. CLS is outperformed by 85.60% of its industry peers.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.90%, which is quite impressive.
The Earnings Per Share has been growing by 48.11% on average over the past years. This is a very strong growth
CLS shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.09%.
Measured over the past years, CLS shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
3.2 Future
Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 38.14% on average per year.
The Revenue is expected to grow by 27.74% on average over the next years. This is a very strong growth
EPS Next Y49.74%
EPS Next 2Y45.82%
EPS Next 3Y44.54%
EPS Next 5Y38.14%
Revenue Next Year24.45%
Revenue Next 2Y28.03%
Revenue Next 3Y29.6%
Revenue Next 5Y27.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 65.23, CLS can be considered very expensive at the moment.
CLS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. CLS is valued rather expensively when compared to this.
CLS is valuated quite expensively with a Price/Forward Earnings ratio of 41.32.
The rest of the industry has a similar Price/Forward Earnings ratio as CLS.
When comparing the Price/Forward Earnings ratio of CLS to the average of the S&P500 Index (36.59), we can say CLS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.23 | ||
| Fwd PE | 41.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLS is on the same level as its industry peers.
CLS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 99.5 | ||
| EV/EBITDA | 40.53 |
4.3 Compensation for Growth
CLS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 44.54% in the coming years.
PEG (NY)1.31
PEG (5Y)1.36
EPS Next 2Y45.82%
EPS Next 3Y44.54%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
344.41
+12.17 (+3.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners75.85%
Inst Owner Change-5.33%
Ins Owners0.52%
Ins Owner Change0.42%
Market Cap39.62B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target248.47 (-27.86%)
Short Float %2.96%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.15%
Min EPS beat(2)6.6%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)6.73%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.68%
EPS beat(12)12
Avg EPS beat(12)8.66%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)6.2%
Min Revenue beat(2)5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)3.54%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.49%
Revenue beat(12)11
Avg Revenue beat(12)3.14%
Revenue beat(16)14
Avg Revenue beat(16)3.37%
PT rev (1m)28.29%
PT rev (3m)53.5%
EPS NQ rev (1m)18.32%
EPS NQ rev (3m)19.76%
EPS NY rev (1m)5.77%
EPS NY rev (3m)5.77%
Revenue NQ rev (1m)13.46%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)4.1%
Revenue NY rev (3m)4.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.23 | ||
| Fwd PE | 41.32 | ||
| P/S | 3.51 | ||
| P/FCF | 99.5 | ||
| P/OCF | 71.74 | ||
| P/B | 19.53 | ||
| P/tB | 28.05 | ||
| EV/EBITDA | 40.53 |
EPS(TTM)5.28
EY1.53%
EPS(NY)8.34
Fwd EY2.42%
FCF(TTM)3.46
FCFY1.01%
OCF(TTM)4.8
OCFY1.39%
SpS98.07
BVpS17.63
TBVpS12.28
PEG (NY)1.31
PEG (5Y)1.36
Graham Number45.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROCE | 26.62% | ||
| ROIC | 21.33% | ||
| ROICexc | 23.67% | ||
| ROICexgc | 30.35% | ||
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% | ||
| FCFM | 3.53% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexgc growth 3Y31.4%
ROICexgc growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 94.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 15.59 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 55.56% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 7.64 |
F-Score7
WACC8.34%
ROIC/WACC2.56
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
EPS Next Y49.74%
EPS Next 2Y45.82%
EPS Next 3Y44.54%
EPS Next 5Y38.14%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
Revenue Next Year24.45%
Revenue Next 2Y28.03%
Revenue Next 3Y29.6%
Revenue Next 5Y27.74%
EBIT growth 1Y62.33%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year58.36%
EBIT Next 3Y30.72%
EBIT Next 5Y38.43%
FCF growth 1Y48.75%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y40.82%
OCF growth 3Y27.84%
OCF growth 5Y6.55%
CELESTICA INC / CLS FAQ
Can you provide the ChartMill fundamental rating for CELESTICA INC?
ChartMill assigns a fundamental rating of 7 / 10 to CLS.
What is the valuation status for CLS stock?
ChartMill assigns a valuation rating of 4 / 10 to CELESTICA INC (CLS). This can be considered as Fairly Valued.
How profitable is CELESTICA INC (CLS) stock?
CELESTICA INC (CLS) has a profitability rating of 8 / 10.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS) is 7 / 10.
Can you provide the expected EPS growth for CLS stock?
The Earnings per Share (EPS) of CELESTICA INC (CLS) is expected to grow by 49.74% in the next year.